Mitesh Patel

How to sell option?
Here let me explain through simple math.
Say BN at 30000
30000 straddle trading at combine premium 800 ( based on current volatility)
Put at 400
Call at 400
You don’t know direction. Sold both.

If move will not come than both will decrease gradually.

At day end it will come down to 720-740 if move will not come. Difference is your profit.

Now case 2:
Move started.
At one points combine premium will start increasing.
Say 810.
Exit immediately. No need to do adjustment.
Let market settle.

Sell again straddle once market settle.
Now repeat same thing.

Straddle selling webinar over.
Good luck.

One can keep SL 550 for both strike to escape from sudden movement.

1. Let's start option selling learning.
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE &amp; 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.

2. If bank nifty will go down  Put premium will go up. Say 80.
Now book profit from call sell position and sell call option equivalent to put premium rate.
At this stage if BN will move in narrow range you will get profit from both.
Keep doing adjustment as per move.

3. At one stage your strangle will become straddle with adjustment. 
Straddle - same strike call and put
Exit point at straddle - exit when straddle combine premium is increased by 15-20 points.
Say 100-100 for call and put premium.

4. If BN moving in one direction at one stage straddle total premium will start increasing. Exit with max 15-20 points loss only. Don't wait.

Same way you can do with Nifty and bank nifty monthly expiry.